Question

The employees of Neronsen Inc. decide to form a union. Although most members of management are ready to support their decision, the CEO wishes to maintain nonunion operations. In an attempt to persuade the CEO to change his mind, a union official claims that labor-management cooperation can help improve the company's revenues. The CEO, however, disagrees. Who is right in this scenario?

A. The union official is right because studies show unionized workers are more productive than nonunionized workers.

B. The CEO is right because union workers are less committed to quality work.

C. The union official is right because union formation tends to reduce the overall cost of labor.

D. The CEO is right because unionized workers find it more difficult to form self-managing teams.

E. The CEO is right because the introduction of unions may cause managers to disregard employee ideas and pay less attention to management practices.

Answer

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